FINANCIAL STATEMENTS SHOULD TELL YOU A STORY

What are the expenses of your business? Be honest with yourself. Do you really know? It is not unusual for owners and managers to be so bogged down in details that they never take the time to review the various expense categories of the business.

What are you spending money on? I have sat in countless meetings where the management of the business doesn’t have clue as to what makes up a given expense in the financial statement. Just look over your com-pany's financial statements. Review the various categories of expenditure. Are they telling you a story? Are you satisfied with the detail? Too little? Too much? Do know what the expense is for? What did the bookkeeper bury in the category?

It's your company. Pay heed to your financial state¬ments. They should tell you what you want and need to know to better manage profitability and cash flow.

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